379.010 Voluntary assignments for benefit of creditors -- Preferred claims.

155 words·~1 min read·/ky/chapter-379/379-010

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Every voluntary assignment made by a debtor to any person in trust for his creditors

shall be for the benefit of all his creditors, except as provided in subsections

(2)and

(3)of this section, in proportion to their respective claims after the payment of the

expenses of the trust.

(2)Any property conveyed by the deed of assignment upon which there is a valid lien

shall be first applied to the discharge of the lien debt, and if the property is not

sufficient to satisfy the lien debt, the lien creditor may present the unsatisfied

remainder as a claim against the estate and receive thereon his pro rata share of the

assets in the same manner as general creditors.

(3)Debts due by the assignor as guardian, conservator, trustee of an express trust

created by deed or will or as personal representative shall be paid in full before the

general creditors receive anything.